Going Executive with an Actionable Voice of the Customer
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Transcript of Going Executive with an Actionable Voice of the Customer
Going Executive with an Actionable Voice of the CustomerService & Support Professionals: ICMI Contact Center Essentials
John Goodman
Vice Chairman, TARP Worldwide
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Agenda
The Opportunity: VOC leads to CE management Drawbacks limiting actionability of VOC process Eight factors leading to an effective VOC Critical data sources which must be included Collecting and integrating data Quantifying the economic impact of service to
gain support from nine other departments Out-of-the-box actions; delivering Psychic Pizza
About TARP Founded in 1971—40 years of customer experience leadership
–White House Service Studies (instigated 800#s & GE Answer Center)
–Assisted 6 Baldrige Winners and 43 Fortune 100 Companies
–Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and “word of mouse” (eCare and Click & Mortar studies 1999)
Credited with developing the approach for quantifying the impact of quality on revenue, cost & WOM for companies like Toyota/Lexus, Apple, IBM, HP, 3M, USAA, American Express, Qualcomm, Museum of Modern Art, Allstate, AARP, FedEx, Neiman Marcus, Hyundai, US Green Building Council & Chick-Fil-A.
Customers will:
Use again
Buy other products
Tell others to buy
+ =DOING
THE RIGHT JOB
RIGHT THE FIRST TIME
MAXIMUM CUSTOMER
SATISFACTION & LOYALTY
ImprovedProduct & Service
Quality
Respond toIndividual Customers
Identify Sourcesof Dissatisfaction
Conduct RootCause Analysis
Feedback onPrevention
EFFECTIVECUSTOMERCONTACT
MANAGEMENT
Context of VOC Within the Customer Experience
Firefighting Mode
Building an Effective VOC: Six Big Ideas From Strategic Customer Service
1. Staff doesn’t cause most customer dissatisfaction – sales, products, processes and customers do
2. It is cheaper to give great service than just good service, the revenue payoff is 10-20X the cost
3. An effective Voice of the Customer includes all kinds of data describing the overall customer experience
4. People are still paramount – make the front line successful with flexibility and clear explanations
5. Deliver technology that customers will enjoy – delivering psychic pizza via any channel
6. Sensibly create remarkable delight
Why Most VOC Processes Lack Impact and Are Cost Inefficient
No unified picture of the customer experience– Depend on survey data which is a lagging indicator
– Unstructured data not systematically included
– Contact and internal data doesn’t tie to survey
Does not estimate revenue damage by granular issue– No action without economic imperative
– Broad indices are not actionable and cause frustration
Doesn’t focus on root causes and why answers didn’t work
Improvement must often be monitored with another survey
Departments with Interest in Your Unit’s Impact
1. Marketing – retention and word of mouth and “word of mouse”
2. Finance – margin and cost reduction
3. Brand – brand-aligned service stories
4. Quality – reduced customer error and innovative fixes
5. Channel partner management – less channel hassles
6. Risk – reduced claims
7. Legal and Regulatory – better service reduces visibility
8. HR – less problems leads to happier front line and lower turnover
9. Product development/market research – ideas and panels
Moving Beyond Being “Just the Call Center or Customer Insights Department”
Create an integrated Voice of the Customer
Create alliances and act as a consultant
– Marketing, brand management and PR
– Risk, regulatory relations
– Operations, distribution
Do the dirty work and the pilot testing
Let other departments get the credit
Eight Factors for an Effective Voice of the Customer Process
1. Well-defined ownership of process and
issues
2. Unified data collection
across whole lifecycle
3. Integration of multiple data
sources
4. Visible, granular,
actionable reporting
5. Clear revenue
and profit implications
6. Formal processes for
translating data into actions and
targets
7. Formal systems for
tracking impact
8. Process supported by
company-wide incentives
Collecting Data On Cause Of Dissatisfaction
- Fails to followpolicy
The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*
Customer20%-30%
Employee20%
- Wrong expectations- Customer error
-Fails to followpolicy
-Attitude
Company 40%-60%- Products and servicesdon’t meet expectations
- Marketing miscommunication- Broken processes
Poorly designed products,Processes, and marketingcreate most unmet expectations. Further, employees are often notequipped with effective responses to problems.
Customer expectationsmust be set and they mustbe educated on howto avoid problemsand surprises.
*Finding based upon TARP analysis problem cause data in over 200 consumer and B2B environments.
At least 30% of contacts are
preventable
Key Factors Driving Satisfaction No Unpleasant Surprises
If Customer Has to Contact– Accessibility – NOT ASA, broad hours via all channels,
accent can make strong first impression
– Taking ownership, Apology
– Clear, believable explanation, treated fairly
– Best estimate – reduced uncertainty
– Emotional connection
– Money is often not the best solution
– Timeliness and Keeping promises
15
Creating A Data Foundation for The VOC
Customer surveys
Customer contact, social media, communities and interaction data: coded and unstructured –why it happened
Internal operations process and quality measures
Employee input – second source of why
+ = Total view of the customer
experienceInternal
process and quality data and employee input
+ Customer contact and
interaction data
Surveys of customer
satisfaction and loyalty
Take The Role Of Chief Customer Officer
Use The Full Range Of Data Available
Operations data
Coded contact data
Unstructured data
Survey data
Social media
Employee input
Multiple levels and types of customers
The Challenge of Using Multiple Data Sources (Health Insurance Example)
1 2 543 6 7 98
Status call or email
Weeks
Unifying Sources into a Single Picture
Understand how representative the source is of the marketplace Understand how to extrapolate to the
marketplace as a whole Classify in a manner compatible with
other sources Key question is how many customers
have encountered a particular issue. Analysis by granular type of issue
TARP’s Enhanced Tip Of the Iceberg With Social Media
VOC must extrapolate complaints to the market place
Each touch point gives a separate estimate
Ratio of complaints to problems is “the multiplier”, usually 1:20-1:200
Estimating Number of Customers and Market Impact from Contacts to Different Touch Points*
* Data obtained via survey of random sample of customers on problem experience and touch point contacted, if any.
100 Airline customers
encountering a rude gate agent
2% to flight attendant0.8% to consumer affairs/
customers relations7% to supervisor on site5% to social media
0.2% to executive by e-mail1% to frequent flyer 800#4% to reservations 800#1% airline web site
3.5% Other
Integrating Touch Point Data (Airline Example)
Source
Problem Reports
Multiplier
Total Estimated Instances
Best Estimate # Instances
Web Site 6 100 600
Social Media & Unstructured Data
20 20 400
Reservations 14 25 350
Executive Complaint 2 500 1,000
555
Consumer Affairs 4 120 480
Survey 0.5% 100,000 500
# Customers in Month
Damage to Loyalty
Value of Customer
Monthly Revenue Impact
555 x .25 x $2,000 = $277,500
=
=
=
=
x xx
=
2,000
6,000
9,000
37,500
54,500Total Customers At Risk
200,000Customers
withProblems
20%Dissatisfied
Many NotRepurchasing
Some NotRepurchasing
50%Satisfied
MostRepurchasing
75% Do NotComplain
25%Complain
30%Mollified
Some NotRepurchasing
Converting Instances Into Revenue and ROI ImplicationsDemonstrating financial impact with the CFO and CMO
If customer worth $1,000, $54,500,000 at riskThree strategies: Prevention, Solicitation of Complaints and Improved Response
Analysis should be done overall and by specific point of pain
Show The CMO That Negative Word Of Mouth Can Trump Marketing
10%delighted
70%satisfied
Telltwo
Tell one
=
=
2,000
7,000
-3,000
10,000customers
Example calculation of potential impact
20%dissatisfied
Tell six
= -12,000
20% dissatisfaction can counter 80% satisfaction
Great Service Is A Word of MouthManagement Mechanism
10%delighted
80%satisfied
Telltwo
Tell one
=
=
2,000
8,000
4,000
10,000customers
Example calculation of potential impact
10%dissatisfied
Tell six
= -6,000
10% decrease in dissatisfaction results in net positive WOM
BrandWeek: Use customers’ word of mouth asprimary marketing mechanism
Quantifies the cost of inaction to precipitate action
Create the Economic Imperative for Action
55%
88%
58%
80%
18%
Loyalty
Dissatisfied
Satisfied
Mollified
2.0
3.0
1.0
6.0
WOM
1.0
Complained
Delight
Did Not Complain
ProblemExperience
No ProblemExperience
Experience
Customers
What are the issues?
Where are the issues?
Why are they not
contacting you?
How can we improve
response / recovery?
What is the ROI on addressing specific
issues?
Business ImpactContacthandling
Dissatisfied
Satisfied
Mollified
$63
$100
$85
$34
Customer Value/Yr.
$107
Complained
Contactbehavior
Did Not Complain
ProblemExperience
No ProblemExperience
Category Consumers
What are the issues?
Where are the issues?
Why are they not
contacting you?
How can we improve
response / recovery?
What is the ROI on addressing specific
issues?
Delighted
Satisfied
98% 3.6 $162
55%
88%
58%
80%
18%
Loyalty
Dissatisfied
Satisfied
Mollified
2.0
3.0
1.0
6.0
WOM
1.0
Complained
Delight
Did Not Complain
ProblemExperience
No ProblemExperience
Experience
Customers
What are the issues?
Where are the issues?
Why are they not
contacting you?
How can we improve
response / recovery?
What is the ROI on addressing specific
issues?
Business ImpactContacthandling
Dissatisfied
Satisfied
Mollified
Satisfied
Mollified
$63
$100
$85
$34
Customer Value/Yr.
$107
Complained
Contactbehavior
Did Not Complain
ProblemExperience
No ProblemExperience
Category Consumers
What are the issues?
Where are the issues?
Why are they not
contacting you?
How can we improve
response / recovery?
What is the ROI on addressing specific
issues?
Delighted
Satisfied
98% 3.6 $162
See article: Setting priorities using market damage by point of pain
Root Cause Analysis is Different Than Analysis of Reason For Call!
Cause is expectation, customer, process, product and response as well as staff
Speech Analytics can assist with the analysis of cause and response effectiveness
– Larger numbers of cases
– What words works best and worst
– Nuances that hard data will never pick up
Appliance company example
Understanding the Cause Allows Broadening the Range of Solutions
Welcome kits, calls and emails
Enhance response with flexible empowerment and explanations
Create efficient emotional connection
Use technology to deliver psychic pizza
– JIT education – utility visit
– Anticipates - Continental
– Simplifies - esurance
Delight sensibly – during slow service periods
Summary
Create a unified VOC to identify opportunities with payoff Understand the full range of root causes using speech
analytics Quantify the revenue and word of mouth impact overall and
by granular issue Prevent workload by proactively educating, connect,
explain and deliver psychic pizza Take control of the VOC and then become the Chief
Customer Officer
Outlined in detail in Strategic Customer Service published by AMACOM
For care package of articles: [email protected] or 703-284-9253
Questions & Answers
John Goodman
703-284-9253
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